Cheryl Leung

• Specialize in Wealth and Personal Banking Business audit, including sales, distribution and operations for insurance and investment products, and credit risk management.
• Provide valuable insights to senior management on potential business risks identified during audits with the implementation of risk-based auditing strategies and the use of new data analytics tools.
• Cooperated with group auditors and external specialists to audit topics requiring special skill (e.g. insurance actuarial assumption setting and monitoring, IFRS 17 requirement real time audit) to ensure accurate and timely completion of audit projects
• Coached junior auditors and group supporting auditors from other locations, aided their professional development and foster a positive work environment

Key audits and findings

A)Thematic audit on Pricing of investment products in Wealth and Personal Banking

Identified HKMA and SFC reportable issues after self-review by management and independent review by KPMG, protecting the Bank from further regulatory criticism

• Overcharging on stock commission and investment funds with support from data analytics results
• Lack of framework for periodic review, approval, communication, set-up and validity of recurring-discount of investment products,
• Trading capacity and Monetary Benefit Disclosure in Written was not in accordance with the SFC Code of Conduct

B)Thematic audit on COVID-19 Campaign for insurance product sales

Provided value-added future campaign launch procedures to avoid revenue loss

• Failure in identification of campaign as material product variation, which led to lack of supervision by product approval governance
• Lack of holistic business case, justification for modification and validation of assumptions and stress scenarios before campaign launch

C)Audits related to sales, distribution and operations of investment products

Provided holistic review on current arrangements to avoid any potential regulatory criticism and financial crime

• Suitability measures for certain investment product (e.g. review of client’s risk tolerance level, valid Risk Profiling Questionnaire) are not completed post account opening
• Set-up of third-party settlement account is allowed for payment and/or receipt of investment transaction proceeds without any due diligence on such arrangement
• Banking App does not restrict Mainland-based users from accessing certain marketing materials online
• Client location confirmation is not always confirmed for investment product transactions subject to cross- border regulatory restrictions.

Other regulatory audits and HKMA validations handled:

• Sharing and Use of Consumer Credit Data Through Credit Reference Agencies (HKAM SPM IC_6)
• Exposure to Connected parties under Banking Exposure (Limits) Rules (BELR) and HKAM SPM CR-G-9 Exposures to Connected parties
• Issues validation on HKMA report of Intermediary Activities of Non-Linked Long Term Insurance (NLTI) Products
• Issues validation on HKMA Examination on the Representation of Deposit Protection Scheme Membership and Protection status of Financial Products

• Rated as “Top performer” in FY2015-2016 and “High performer” in FY2013-2015
• Specialized in wealth and asset management industry, including audit of private equity funds, hedge funds and Securities and Futures Commission(“SFC”) licensed corporations (Type 9)
• Contributed management recommendation on internal control to remedy for internal control
• Liaised specialists from both external and internal to assess the investment valuations, including real estates, convertible bonds and private equities
• Handled for budgeting, planning and coordinating audits, staff coaching and project management